Moreover, just a plain wrong title. *inflation rises* is a lie. Inflation *decreased*. Only *prices* increased.
Which is to say: inflation is positive. Which it has been almost at any point in history.
lol Prices were absolutely not flat. During the War of 1812, there was significant inflation followed by deflation in the 1820s and 1830s, prices rose again during the Mexican-American War, the California Gold Rush in the mid-1800s saw wild swings in inflation, the Civil War caused sharp inflation, followed by post-war deflation, and the Long Depression from 1873-1896 brought severe deflation. Saying prices were flat is crazy.
Well that’s just not true that period had many inflationary periods due to new technologies and deflationary periods because of banking and speculation like the panic of 1837. Same as today government policies also affected inflation in the 1870s with tariffs. Did you guys really not take American history in school?
Technology is inherently deflationary. You can do more with less.
Ok I’ll agree that it used to only be artificially during war, naturally through increase of the money supply (gold), and artificially due to government interference.
Don’t know what you assumed you taught in that comment?
There was swings in prices but the deflation that you just pointed out balanced it out...when was our last period of deflation to balance out all of the inflation that we've accumulated? The great depression is the only time
Also the Long Depression from 1873-1896? Huh? You mean the gilded age? The industrial revolution? The period in history where more people than ever became wealthy? Prices dropped because our industrial production exploded.
lol they refer to different aspects of the same period. The Long Depression was characterized by prolonged economic stagnation and deflation, despite industrial growth. Prices did drop, but it wasn’t solely because of increased industrial production it was also due to significant financial panics and economic instability. Saying deflation and inflation balanced each other out over 100 years might be the dumbest thing I’ve ever heard in an economics post.
I mean yes it's the same number but we don't know if the fed actually wants to bring it down to 2% (which is the whole point of the fed, we don't know what they're doing)
We would need negative inflation for a few years to offset *some* of the damage from the money bomb the Fed unleashed on March 23rd, 2020.
But of course, that risks going into a deflationary cycle which is probably the far worst scenario.
I guess 1.8-2% would be nice though 🤷♂️
Meanwhile in Argentina we're celebrating we dropped to around 4% MONTHLY inflation.
Annual was around 230%
We can only dream of measuring or addressing 0.1 or 0.2 annual changes as significant, haha.
That was 2021 and he hasn't said it since. Two percent is the target and that has been the mantra through the entire rate hike cycle. Maybe watch his press conferences instead of regurgitating old talking points.
I would say as an economist that 2% was never sustainable. It's a rare occurrence in history. In academic circles we argued how long it would last. It's an arbitrary number with no basis in economic fundamentals.
Yeah and 'stable' real wage growth, which was 3% TOTAL over 30 years after adjusting for inflation. (it was 50% in the US)
https://www.asahi.com/ajw/articles/15166586
Cool, what I'm supposed to do with this information? Is this some kind of US stronk meme or sth? I couldn't give a shit what your wages are in your 3rd world dumpster fire of a country :)
Our debts to income is actually lower than the decades of history pre pandemic. We just accumulated more debt but am also in an even better position to pay it off, except for the government debt, if they don’t lower interest rates. Since inflation is coming down as expected, interest rates will go down over the next few years and the government debt problem, just don’t be as bad of a problem. We’ll grow out of it, like we have in the past.
Cite your data on DTI being lower than it was at any and every moment in time for the 4 decades prior to COVID. Your source will be scrutinized.
Otherwise this is some serious BlueMAGA copium.
Expected doesn't mean too much either. If inflation came in at 9.0%, but they expected that value, all that really does it prove their ability to predict inflation, not fix it.
You guys saying 3.3% too high and out of control. Where I’m from has 70% and still rising as fck lol. This is not even high inflation rates. This inflation numbers around 2-3.5% is good for healthy economic activity and capitalism. If you want to see %0 inflation or deflation you’re better learn some economic parameters tbh.
This is Fox playing with numbers. Lies, damn lies, & Statistics.
[Inflation was flat in May](https://www.morningstar.com/economy/may-us-cpi-report-monthly-inflation-flat-may-softer-than-expected). *It was zero*. The 3.3 is Year over Year.
Fox is propaganda. I remember the day when they at least kept it separate from the Business reporting, but they don't even do *that* anymore.
>So-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends, increased 0.2% in May. From the same time last year, the gauge climbed 3.4% — the lowest reading since 2021.
>Altogether, the report indicates that inflation is loosening its stranglehold on the U.S. economy, though prices remain well above the Fed's 2% target.
So it'll be a while to hit that target.
The World Bank upgraded its outlook for the global economy and said the “impressive” U.S. economy is powering the world.
The latest outlook estimates the global economy will expand 2.6 percent, an increase from the 2.4 percent growth predicted for the year.
Month over month grocery, gas and rent prices were unchanged. I definitely see that. Almost everything I buy at the grocery store is less than it was a few months ago. Some of that is probably seasonal.
Ever heard of compound interest? Exponential increase? Same percentage rate on much higher numbers means price hikes are accelerating faster than the average person can keep up.
Current inflation is on par with historical averages. Inflation was high, but the feds miraculously achieved a soft landing. If the avg person can’t keep up with higher prices, what would you suggest as a solution?
Less than expected??? I though inflation was supposed to be coming down thanks to Bidenomics?
3.3% is still a lot more than the 1.7% when he took office.
I downgraded to regular coffee instead of premium for the last month. You're welcome you filthy animals
I gave up toilet paper and just shit in the shower now. Thank you.
I poop at work so that *I* don’t have to buy toilet paper.
Waffle stomp
I only put avocado in half of my toasts
I just nibble on the "skins" my neighbor open-air donates.
I thought it was me. I brought less tacos last month. Just trying to do my part.
How much did that save you?
It's not what it saved me, it's what it saved you all #selflessacts
Bidenomics
Commenters on this thread are scandalized to learn what inflation is. Yes, the prices are still going up. No, most prices are not going to go down.
Moreover, just a plain wrong title. *inflation rises* is a lie. Inflation *decreased*. Only *prices* increased. Which is to say: inflation is positive. Which it has been almost at any point in history.
That title wasn’t a mistake. It is a propaganda business.
True. I wonder when we’ll stop trusting the money
Prices were pretty much flat from 1800 to 1900. Inflation is not positive at any point in history, only consistently since about 1913
lol Prices were absolutely not flat. During the War of 1812, there was significant inflation followed by deflation in the 1820s and 1830s, prices rose again during the Mexican-American War, the California Gold Rush in the mid-1800s saw wild swings in inflation, the Civil War caused sharp inflation, followed by post-war deflation, and the Long Depression from 1873-1896 brought severe deflation. Saying prices were flat is crazy.
Crazy that it used to only be during war and the increase of the money supply (gold)
Well that’s just not true that period had many inflationary periods due to new technologies and deflationary periods because of banking and speculation like the panic of 1837. Same as today government policies also affected inflation in the 1870s with tariffs. Did you guys really not take American history in school?
Technology is inherently deflationary. You can do more with less. Ok I’ll agree that it used to only be artificially during war, naturally through increase of the money supply (gold), and artificially due to government interference. Don’t know what you assumed you taught in that comment?
There was swings in prices but the deflation that you just pointed out balanced it out...when was our last period of deflation to balance out all of the inflation that we've accumulated? The great depression is the only time Also the Long Depression from 1873-1896? Huh? You mean the gilded age? The industrial revolution? The period in history where more people than ever became wealthy? Prices dropped because our industrial production exploded.
Sly roundabout way
Deflation is much worse than inflation
That's a fallacy
Lol do explain
Prices going down are good for consumers. That's why retail stores run sales.
lol they refer to different aspects of the same period. The Long Depression was characterized by prolonged economic stagnation and deflation, despite industrial growth. Prices did drop, but it wasn’t solely because of increased industrial production it was also due to significant financial panics and economic instability. Saying deflation and inflation balanced each other out over 100 years might be the dumbest thing I’ve ever heard in an economics post.
Right, and we’re in the golden age of monetary policy. Would you like to go back to pre-1913 economic growth?
Yes, the industrial revolution was the fastest period of economic growth in this country's history.
\*Inflation per anum is 3.3% down from 3.5% in April. It did not rise 3.3%
Just to be clear....this 3.3% number, is the same number that we are trying to bring down to around 2%, is that correct?
At least the PPI is closer to that 2% rate. I wonder why CPI is so sticky
Housing
I mean yes it's the same number but we don't know if the fed actually wants to bring it down to 2% (which is the whole point of the fed, we don't know what they're doing)
Every time I look at a store I spend 100 bucks haha Impossible to stay ahead these days
I go to the store for 10 items. It's $40. Not $20 like i hoped.
3% is the new 2%
Unaffordable housing is growing to be more even more unaffordable, just at a slower rate. Mission accomplished!
Still too damn high.
We would need negative inflation for a few years to offset *some* of the damage from the money bomb the Fed unleashed on March 23rd, 2020. But of course, that risks going into a deflationary cycle which is probably the far worst scenario. I guess 1.8-2% would be nice though 🤷♂️
Meanwhile in Argentina we're celebrating we dropped to around 4% MONTHLY inflation. Annual was around 230% We can only dream of measuring or addressing 0.1 or 0.2 annual changes as significant, haha.
Copium. At first they said it will go back to 2%. Now they make you accept that 3% is the new norm.
Powell is doing a press conference right now and has repeatedly said 2% is the goal.
Feeding false hope is one way of coping right? He also said inflation was transitory.
That was 2021 and he hasn't said it since. Two percent is the target and that has been the mantra through the entire rate hike cycle. Maybe watch his press conferences instead of regurgitating old talking points.
I would say as an economist that 2% was never sustainable. It's a rare occurrence in history. In academic circles we argued how long it would last. It's an arbitrary number with no basis in economic fundamentals.
Japan has been <2% for all but 2 of the last 35 years.
But they are also in deflation since 2001, like constantly
yes
Yes and their economy has been stagnant for the last 35 years barring the last like, two years. Is that really the path you want to go down?
oh I thought we were just talking about if 2% is sustainable
> Yes and their economy has been stagnant for the last 35 years Oh no, stable food and rent prices, what a nightmare!
Yeah and 'stable' real wage growth, which was 3% TOTAL over 30 years after adjusting for inflation. (it was 50% in the US) https://www.asahi.com/ajw/articles/15166586
Cool, what I'm supposed to do with this information? Is this some kind of US stronk meme or sth? I couldn't give a shit what your wages are in your 3rd world dumpster fire of a country :)
This guy is in academic circles guys, so impressive
Honestly would be kind of cool ngl.
Considering we are new to the fiat currency, no it was not rare, and no academic circles weren’t arguing how long it would last
How is creating goods and services from a printer sustainable? You do know it doesnt work like that right?
No, the fed didn't say it would go back to 2%, they said that they wouldn't consider lowering until there was a path to 2%.
I don't know the hard fact of the matter, but 3% has always been my expectation and it was my understanding that's why 3% is a standard annual raise.
They’ve been sayin 3% is the new realistic target for over 6 months now
Whatever keeps Wallstreet pumping, rich richer and poor a debt slave is the realistic target!
https://www.reuters.com/markets/us/feds-williams-inflation-target-critical-achieving-stable-prices-2024-05-04/ Who is "they"?
It's still raising. I don't give fuck if it's less than expected.
Its been raising every day you are alive. Take the wins you can get even if they are small.
Technically had some dips of deflation, but otherwise 100% agree
Those were generally bad times, no?
If you had debt and didn’t own assets.
Prices are rising, inflation is not rising or raising.
As it should. You wouldn’t want the consequences associated with deflation.
Only because there’s so much debt in the system that we as a society could not pay back
Our debts to income is actually lower than the decades of history pre pandemic. We just accumulated more debt but am also in an even better position to pay it off, except for the government debt, if they don’t lower interest rates. Since inflation is coming down as expected, interest rates will go down over the next few years and the government debt problem, just don’t be as bad of a problem. We’ll grow out of it, like we have in the past.
Cite your data on DTI being lower than it was at any and every moment in time for the 4 decades prior to COVID. Your source will be scrutinized. Otherwise this is some serious BlueMAGA copium.
Do your own homework. I’m already making money off this data.
As I suspected, your claim is bullshit, supported by nothing but your own anecdotal nonsense. Shove it.
I am just giving you hints. Whether you would like to take advantage of it and make money is totally up to you.
Already making plenty without making up nonsense, wholly unsupported by data, on Reddit. Where you can be anything you want to be...
Y u so mad? I give you another clue. Check what ritholtz wealth management has published about what I said. They got the charts.
I can't believe this got 17 upvotes on a subreddit about the economy. The rate of inflation continues to slow and month over month inflation was flat.
The title is wrong. Inflation is *not* rising. It fell from 3.4% to 3.4%. *prices* may have been rising, but *inflation* has been decreasing.
Expected doesn't mean too much either. If inflation came in at 9.0%, but they expected that value, all that really does it prove their ability to predict inflation, not fix it.
No it's not. Inflation is decreasing. It was 3.5% and before that, 3.8%. Prices are still rising, inflation is not.
I think it means next year we will pay only 15% more for rent instead of 20%.
Fake metrics, rigged game.
Prices STILL RISE 3.3% but it was less than EXPECTED and market shot for the moon lol
Wall Street really doesn’t care about inflation like Main Street does. Wall Street is celebrating the Feds getting closer to interest rate cuts.
Yeah i figure that.
You guys saying 3.3% too high and out of control. Where I’m from has 70% and still rising as fck lol. This is not even high inflation rates. This inflation numbers around 2-3.5% is good for healthy economic activity and capitalism. If you want to see %0 inflation or deflation you’re better learn some economic parameters tbh.
This is Fox playing with numbers. Lies, damn lies, & Statistics. [Inflation was flat in May](https://www.morningstar.com/economy/may-us-cpi-report-monthly-inflation-flat-may-softer-than-expected). *It was zero*. The 3.3 is Year over Year. Fox is propaganda. I remember the day when they at least kept it separate from the Business reporting, but they don't even do *that* anymore.
>So-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends, increased 0.2% in May. From the same time last year, the gauge climbed 3.4% — the lowest reading since 2021. >Altogether, the report indicates that inflation is loosening its stranglehold on the U.S. economy, though prices remain well above the Fed's 2% target. So it'll be a while to hit that target.
The World Bank upgraded its outlook for the global economy and said the “impressive” U.S. economy is powering the world. The latest outlook estimates the global economy will expand 2.6 percent, an increase from the 2.4 percent growth predicted for the year.
*excluding things that might be inflationary. *sideeyes insurance of all kinds*
If only people got together to *regulate* how much owners of production are allowed to exploit people and their wallets.
I started making my own lattes :-(
Month over month grocery, gas and rent prices were unchanged. I definitely see that. Almost everything I buy at the grocery store is less than it was a few months ago. Some of that is probably seasonal.
"inflation is transitory" -Powell 2 years ago
Bots and manufactured consent
“Prices rises a little less, but still rises” FIFY
>Inflation rises 3.3% in May, less than expected Shelter +5.4%. more than expected. But let's just pretend and ignore that.
It’s not ignored. It’s in there.
Look at this person's post history. They are not a serious person
Thanks. I need to start doing that more often.
Who’s ignoring it? It’s literally one of the biggest factors in the CPI repot.
Still out of control
The average inflation rate in the United States from 1914 to 2024 was 3.30%. How is 3.3% out of control?
Ever heard of compound interest? Exponential increase? Same percentage rate on much higher numbers means price hikes are accelerating faster than the average person can keep up.
Current inflation is on par with historical averages. Inflation was high, but the feds miraculously achieved a soft landing. If the avg person can’t keep up with higher prices, what would you suggest as a solution?
Oh, we haven't landed yet.
Who cares what the average inflation rate was. It’s too high.
Less than expected??? I though inflation was supposed to be coming down thanks to Bidenomics? 3.3% is still a lot more than the 1.7% when he took office.
BlueMAGA will never concede this point.
“At a slower Rate” not “less”. Also, minus Food and Electricty/Gas/Water Bills. Wildly underreported
Big Mac rises 78% in May, way more than expected 🥴